Ministry of Trade, Industry and Energy

MOTIE lays out initial blueprint for K-design and AI convergence

Trade, Industry and Energy Minister Dukgeun Ahn held the AI Design Conference on July 9 at LG Science Park in Seoul with design companies and experts and announced the AI Design Diffusion Strategy. Based on a shared understanding of the need to enhance across-the-board industrial competitiveness through design innovation, the AI Design Diffusion Strategy was established over a four-month process of discussions and opinion gathering. This process involved design working group committee members, relevant organizations, and AI and design companies. On May 8, the Ministry of Trade, Industry and Energy (MOTIE) launched the Committee on New Industrial Policies for the AI Era, aiming to establish strategies for six major areas. The AI Design Diffusion Strategy is MOTIE’s second in its series of AI utilization strategies. MOTIE’s execution of the AI Design Diffusion Strategy will center around four main initiatives: launching flagship projects; gaining competitive edge; creating new markets; and institutionalizing AI design systems and norms. By increasing the rate of design utilization to 60 percent (from the current 37 percent), the strategy aims to raise design firms’ AI adoption rate to 50 percent and nurture 10,000 AI designers and 500 innovative design firms. The ministry will first roll out the AI Design Flagship Project across seven major areas. Currently, the AI utilization rate is low (5.5 percent), with the initial market primarily built around global design solution companies. This year, the Korea Institute of Design Promotion (KIDP) will lead the development of AI services in three major areas: trend analysis, design similarity search, and smaller Large Language Model (sLLM). By 2025, MOTIE intends to identify demands in four key areas with high AI design synergy prospects (consumer goods design, optimal design of engineering components, automated design of manufacturing process, and automation of digital generative design) and support the development of 20 AI design models over three years. Secondly, aiming to secure AI design competitiveness (technology, company, data, and talent), the ministry will announce the AI design technology roadmap for the following five major areas by the end of this year and provide R&D assistance beginning in 2025: design concept, generative design, prototyping, design-production synchronization, and design knowledge and protection. For each of the country’s six major regions, a design creation lab and a company-catered support system will be established. The latter will focus on AI transition and nurturing AI design software companies. Moreover, MOTIE will seek measures for design funding and financial assistance. Furthermore, through collaboration with design promotion institutions and overseas entities, a K-design big data hub will be set up around four areas: design archive, K-heritage design, color, materials, finish (CMF), and human data. The Industrial Skills Council will lead the development and distribution of AI design education programs, open five design-AI convergence major tracks, and run an online education program, “Design Ground,” for teaching AI design trends and design tool utilization. Third, MOTIE will contribute to invigorating the AI design market by selecting and supporting 150 joint projects in market analysis, product design, design automation, and service prototype generation based on generative AI technology with a special focus on four major industrial sectors: manufacturing, nudge, engineering, and packaging. The ministry will also provide support for the establishment of a marketplace for user and supplier companies while extending comprehensive assistance to manufacturers via engineering big data platforms established at the Korea Institute of Industrial Technology (KITECH). Fourth, MOTIE will establish a design rules system that aligns with the AI era. In the second half of this year, i date2024-07-10

Korea and Thailand launch 1st official negotiating round for bilateral EPA

Deputy Minister for FTA Negotiations Roh Keon-ki is leading the Korean delegation in the first official round of negotiations for the Korea-Thailand Economic Partnership Agreement (EPA) through July 9–11 in Bangkok.   With Deputy Minister Roh as Chief Delegate, the Korean delegation is composed of representatives of relevant ministries, including the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food, and Rural Affairs (MAFRA), and the Ministry of Health and Welfare (MOHW). The Thai delegation is led by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations of the Ministry of Commerce of Thailand. The two delegations are to engage in negotiations on goods, services, investment, digital, government procurement, and intellectual property.   Since jointly declaring the commencement of negotiations in March, Korea and Thailand have pushed forward with preliminary procedures for the official negotiating round, during which they aim to lay down the groundwork for accelerating future negotiations.   Deputy Minister Roh stated that while the two countries have already established trade agreements through the Korea-ASEAN Free Trade Agreement (FTA) and the Regional Comprehensive Economic Partnership (RCEP), the level of their trade and economic cooperation has room for improvement, highlighting that a bilateral EPA catered to both countries’ needs will serve as an institutional foundation for upgrading the Korea-Thailand economic cooperation. date2024-07-09

Vice Minister attends completion ceremony of POSCO International's Gwangyang LNG Terminal

Vice Minister Namho Choe attended the completion ceremony of POSCO International’s Gwangyang LNG Terminal No. 1 on July 9, held in South Jeolla Province.   The KRW 1.05 trillion Gwangyang LNG Terminal project commenced in 2002 as the first private-led LNG terminal, housing six LNG tanks (930,000kl), 680 metric tons per hour gasification and transmission facilities, as well as port facilities capable of berthing a 180,000m3 LNG carrier.   In his congratulatory message, Vice Minister Choe mentioned plans to foster an environment for creating nationwide synergy through mutual cooperation and competition between the Korea Gas Corporation (KOGAS) and the private sector.   The Ministry of Trade, Industry and Energy (MOTIE) aims to launch a deliberative committee in the latter half of this year to support the objective and fair decision process regarding the use of pipelines and controlling the natural gas charge volume per terminal. date2024-07-09

FDI pledged to Korea in H1 2024 reaches $15.3 bln

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 5 that foreign direct investments (FDIs) pledged to Korea in the first half (H1) of 2024 reached USD 15.3 billion, the third highest in record. FDIs that actually arrived in Korea over the same period amounted to $6.9 billion.   As a result of the high base effect from last year’s FDI pledge outcomes from the state visits during H1 2023 ($3.1 billion), this year’s H1 pledges are down by 10.3 percent year-on-year, but still surpass 130 percent of the recent five-year average.   By industry, the manufacturing sector saw a pledged investment of $8.1 billion in the first half of the year, up 6.5 percent. Items that experienced growth were electrical/electronics (up 25.7 percent), machinery/equipment/precision medicine (up 102.6 percent), pharmaceuticals (up 70.6 percent), and other advanced industries and those related to MPE (materials, parts, equipment) sectors. Semiconductors (up 120.7 percent) and bio (up 207.5 percent) saw steep boosts in FDI in this half.   The service sector’s FDI pledges totaled $6.4 billion, down 24.3 percent and occupying 41.8 percent of total FDI. Its growth centered around information and communications (up 25.3 percent), R&D/specialization/science technology (up 10.8 percent), and other sectors with high degrees of economic growth contribution.   By region, FDI pledged from China and other regions, including Hong Kong, Singapore, Taiwan, and Malaysia, increased 25.7 percent to $3.9 billion; FDI pledged from Japan rose 18.9 percent to $2.9 billion; FDI commitments from the U.S. surged 17.0 percent to $2.6 billion; and FDI pledged by the EU climbed 12.8 percent to approximately $2.0 billion.   By type, M&A and greenfield investments pledged to Korea both dropped 13.7 percent and 9.1 percent, respectively, to $3.8 billion and $11.5 billion. date2024-07-05

Electric power equipment industry gearing up as Korea's new export growth engine

Trade, Industry and Energy Minister Dukgeun Ahn visited HD Hyundai Electric on July 4 in Gyeonggi Province to discuss export assistance measures for the electric power equipment and materials industry.   As vast amounts of electric power are needed in the recent expansion of artificial intelligence (AI) datacenters and the diffusion of carbon-free power sources like renewables and nuclear power, the electric power equipment and materials market has recently been enjoying its supercycle. The industry’s exports are likewise on the rise, competing with bio health and secondary batteries after surpassing home appliances and textiles in 2023. Should electric power equipment and materials attain this year’s export and bid targets of USD 16.2 billion and KRW 20 trillion, respectively, they will rank among Korea’s top 10 export items.   At HD Hyundai Electric, Minister Ahn toured the exhibition hall showcasing the world’s first direct current (DC) distribution facilities for 1 megawatt-class buildings. This was followed by the signing of the “K-grid Export Cooperation MOU” among Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. Viewed as a leading export business model for energy sectors, the MOU is significant in that it brings public companies in electrical power and export assistance together for collaboration.   With aim to support power equipment and materials exports, the Government plans to supply the industry with a ₩2.7 trillion special preference trade insurance program this year. Moreover, for the North American, European, and ASEAN markets where power grid demands are forecast to surge, trade centers will be designated with emphasis on power materials and equipment. Overseas marketing support will be strengthened through increased matching opportunities with domestic and overseas clients via trade shows. In the latter half of this year, the Government will establish measures for expediating the export of power equipment and materials with plans for a stronger ecosystem, export committee, and increased R&D.   Minister Ahn stated that the public and private sectors will work in tandem to support not only “K-grid”, but also energy sectors like renewables, energy efficiency, and energy storage systems (ESS) to grow into pillar export industries. date2024-07-05

Solar power distribution blueprint built around Korea's industrial complexes

Trade, Industry and Energy Vice Minister Namho Choe chaired the Renewable Energy Policy Meeting on July 3 and announced the ministry’s measures for invigorating solar power generation across industrial complexes as part of implementing the previously announced strategy for expanding renewable energy distribution and bolstering supply chains.   As the demand for carbon-free energy sources is on the rise, the Korean government is pushing for an orderly distribution of renewable energy sources in addition to nuclear power. In realizing the distribution of 6GW per annum in accordance with the 11th Basic Plan on Electricity Supply and Demand, some of the existing challenges include power system stabilization and local residents’ receptivity issues. In view of these challenges, the Ministry of Trade, Industry and Energy (MOTIE) is eyeing the industrial complexes as candidate sites, as they are low in residential population and undergo planned development. Industrial complexes are also highly concentrated with companies and consume large quantities of power.   In this vein, MOTIE has established measures for invigorating the distribution of 6GW solar power installed across industrial complexes by 2030. The plan is to provide tailored support spanning the entire process of securing site location, licensing, and facility operation. Project and investment briefings will be held to draw the participation of tenant businesses. Business models are to be determined in detail through consultations. In the licensing stage, real-time information sharing will be available, and the overall licensing process will be shortened. At the management stage, the goal is to secure stability through organized maintenance.   The Government will also strengthen the role of the public sector for an orderly distribution of solar power. A committee consisting of members from the Government, local authorities, and related institutions will steer public demonstration projects and site location. This year, demonstration projects amounting to an aggregate 240MW will be launched across industrial clusters in Cheonan, Daebul, Ulsan, and Pohang. Committee members will seek measures to include the joint participation of plant owners and workers.   Vice Minister Choe remarked that “Korea’s industrial clusters are the optimal sites for orderly solar power distribution,” adding that the ministry will aim to carry out a cost-effective distribution centering on state-led projects. date2024-07-04

Lotte Biologics' biopharma plant breaks ground in Songdo

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the groundbreaking ceremony of Lotte Biologics’ biopharmaceuticals manufacturing plant on July 3 in Incheon, with the participation of Lotte Group Chairman Shin Dong-bin, major domestic and overseas pharmaceutical companies, and government officials, including Prime Minister Han Duck-soo, whose congratulatory message was shared via video.   In view of the announcement by Ministry of Trade, Industry and Energy (MOTIE) on June 27 on the designation of five strategic high-tech bio industrial complexes, Lotte Biologics is investing KRW 4.6 trillion for the establishment of a large-scale biopharma production plant in Songdo, Incheon.   With the goal of ranking among the global top 10 biopharma contract development and manufacturing organizations (CDMO), Lotte Group launched Lotte Biologics in June 2022. With the acquisition of an overseas biopharma manufacturing plant (BMS) in 2023, it officially entered the CDMO market within one year of launch. Starting this year, it plans to build up its global biopharma manufacturing competitiveness through a ₩4.6 trillion investment in the establishment of three biopharma plants with a total manufacturing volume of 360,000L by 2030.   The completion and operation of the plants are anticipated to create an economic effect of ₩7.6 trillion and 37,000 related jobs, according to the company’s estimation. Moreover, Lotte Group will actively support the provision of tenant space for biotech venture capital firms entering the site and nurture professional talent through industry-academia joint programs.   With Korea’s biopharma exports achieving 8.8 percent year-on-year growth to USD 7.4 billion in H1 2024, MOTIE aims to continue supporting the bio sectors become future economic growth engines through the expansion of the national strategic high-tech bio industrial complexes. date2024-07-04

Korea and Indonesia to accelerate bilateral economic cooperation

Minister for Trade Inkyo Cheong visited Jakarta, Indonesia (July 2–4) amid anticipation of stronger Korea-Indonesia cooperation across a wide range of industries, including future mobility and clean energy.   Trade Minister Cheong first attended the ceremony celebrating the mass production of Indonesian battery-embedded electric vehicles (EV), hosted by Hyundai Motor, in the presence of Indonesia’s President Joko Widodo and other government key figures. The trade chief gave a congratulatory message, stating that he looks forward to seeing “made-in-Indonesia” EVs cruising throughout ASEAN and the global market and expressing hopes for the two countries’ economic cooperation to expand in all directions on the occasion of the EV collaboration.   Then he met with Indonesia’s Investment Minister Bahlil Lahadalia to discuss bilateral economic cooperation measures, asking for support and interest towards locally operating Korean companies’ projects currently being pushed forward in various areas like EVs and petrochemicals. The two sides agreed to closely cooperate in carbon capture and storage (CCS), solar power, carbon neutrality, and other clean energy areas.   The trade minister also attended the ceremony for the inking of memorandums of understanding (MOUs) on electric two-wheelers and for smart e-mobility cooperation, organized by Korea Smart E-Mobility Association (KEMA).   He visited the Economic Research Institute for ASEAN and East Asia (ERIA) as well for a meeting with experts on measures for enhancing cooperation in East Asia and the Pacific region and held a conference with locally operating Korean firms and institutions to gather opinions and discuss local business issues. date2024-07-03